BOE likely to keep rates on hold amid sticky inflation
Bloomberg · Just In
Bloomberg
Just In
Capital Economics' Jennifer McKeown discusses the outlook for BOE policy after UK inflation held at the highest level in more than 1 1/2 years in August, another uncomfortable reading that is likely to keep officials wary over cutting interest rates.
Breakdown
- Recent economic data has matched market and Bank of England expectations. 8s
- Persistent inflation and wage growth have reduced the likelihood of more rate cuts this year. 18s
- The Bank of England may wait for the government's budget to assess further inflation risks. 27s
- Analysts expect the UK labour market to weaken and wage growth to slow next year. 38s
- There may be increased calls for rate cuts as wage growth declines in the future. 47s